Driving profitable growth through innovation in the attractive built-in kitchen category
Highlights: Built-in kitchen - Europe*
- Sales increased by 5.3%
- Gross profit increased by 5.9%
- 4.9 in consumer star rating at launch of the new Electrolux range
- Strengthened value market share to 22%
*YTD September 2020 y-o-y. Comparison with previous Electrolux-branded built-in kitchen range in 2019.
Electrolux has strengthened its premium position in the built-in kitchen area in Europe through deep consumer insight to drive sales, consumer ratings and profit.
Delivering profitable growth through innovation
Built-in kitchen is a key innovation area for Electrolux in Europe, where it has further strengthened its position in recent years. This has involved sharpening of its product portfolio through deep consumer insight to even better respond to consumer needs and create simply outstanding consumer experiences. During the second half of 2019, Electrolux launched its new built-in kitchen range under a sharpened Electrolux brand. This new range has been very well received by consumers with ratings of 4.9 stars out of 5 at launch.
The new range contributed to an increase in net sales for built-in kitchen by 5.3%, and gross profit by 5.9% with a strong mix contribution of 4%. Electrolux has a 22% value market share of the built-in kitchen market in Europe and a no 1 or no 2 position in eight of its key sales clusters.
Consumer insight drives innovation
The new built-in kitchen range features appliances with intuitive user interfaces that provide real-time guidance to the user. This is designed to meet consumer expectations on ease of use in combination with technical innovation. The QuickSelect dishwasher interface is an excellent example of product development through true consumer insight. The interface clearly indicates to the consumer how the cycle length of the various dishwasher settings affects energy and water use so they can make informed program selections.
QuickSelect was developed by identifying real consumer needs when using a dishwasher, including how they can act more sustainably in their everyday life. Electrolux uses a design process that includes users as co-creators to ensure their feedback is heard every step of the process and their needs are fully met. In addition, Electrolux collects data from online comments from consumers about its products, which is fed into the design process. QuickSelect has been highly appreciated by consumers who have rated it 4.92 stars out of 5, while net sales and gross profit have increased by 11%*.
The importance of branding and effective marketing
Strong brands grow faster, are more profitable and are more resilient during crises. Here consumer insight is also important to create a systematic process for effective branding and marketing campaigns. In the beginning of 2019, a sharpened Electrolux brand was launched based on clearly defined attributes - ‘consumer centricity’, ‘leadership in sustainability’ and ‘designed in Sweden’. This was then developed into a comprehensive campaign across all media touchpoints, including TV. Consumer brand recall was tested and validated throughout the entire campaign to ensure high success rates. The results showed that the advertisement was effective both in terms of boosting short-term sales and having the potential to build Electrolux brand power in the long run. Success in the strategic Polish market has already been measured and Electrolux is now rated as a top three brand in Poland following a successful brand campaign.
*YTD September 2020, y-o-y.
Consumer brand recall was tested and validated throughout the entire campaign and it showed that the advertisement was effective both in terms of boosting short-term sales and having the potential to build Electrolux brand power in the long run.